Sales of new cars fell sharply last month as the squeeze on household finances, inflation and benefit freezes continue to bite.

The number of new cars registered in Northern Ireland in March was down by 17%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), with 7,122.

The drop was magnified by inflated sales figures in March 2017 due to a change in excise duty which prompted many buyers to bring forward their plans to buy a new car.

But even allowing for that, the downward trend in car sales continues with 9% fewer sold for the first quarter as a whole compared to last year.

Ulster Bank Chief Economist in Northern Ireland Richard Ramsey said that looks set to continue.

“The last year has seen the fewest number of new car sales since 2013,” he said. “Given the continued squeeze on household incomes, from inflation and benefits freezes, the expectation is that Northern Ireland will experience a further softening in new car sales in the year ahead.”